Cochrane on Bank Alternatives

The "Grumpy Economist" John Cochrane has a post about a Wall Street Journal article about non-bank lenders, which are rising to meet the need for business credit in response to banks that, either because of regulations or caution, are reluctant to lend. Professor Cochrane writes: "It is so heartwarming as an economist to see, even if slowly, all the adjustments we expect. Banks not lending (or forced not to lend)? Someone will start a new business model to fill in the void."